WT/TPR/S/209 Trade Policy Review 
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III. TRADE POLICIES AND PRACTICES BY MEASURE    
(1) INTRODUCTION           
1. Since its first Trade Policy Review (TPR) in 20 01, Mozambique has continued liberalizing its 
trade regime.  Its tariff was reduced in 2002 and again in 2007, with maximum rates lowered from 
30% to 20%.  This reduction increased the already substantial gap between applied and bound MFN 
tariffs.  All Mozambican tariff rates remain ad valorem.   In 2008, the simple average MFN tariff was 
10.2%, down from 13.8% in 2001;  these figures ex clude the surtaxes on sugar, cement, and 
galvanized steel products (also in place in 2001).  At the customs border, a 17% VAT is levied, along 
with excise taxes on alcohol, tobacco, luxury product s, road motor vehicles, and boats.  Certain 
necessities (food, soap, sugar, cooking oil) are exem pt from VAT.  Investors typically obtain customs 
duty and tax exemptions on goods imported as part of existing investment incentives (Chapter II(4)(iii)). 
2. Mozambique implemented the WTO Customs Valu ation Agreement in 2002.  Pre-declaration 
and pre-payment of customs duties and taxes were eliminated in 2003.  Pre-shipment inspection 
applies to a "positive list" of pro ducts, which is being progressively  narrowed.  The full operation of 
the customs service was returned to domestic contro l in 2005, proper management of customs services 
remains a challenge.  Computerization is incipien t.  The import and export licensing regime appears 
largely unchanged since 2001.  Import and export r estrictions are in place to protect consumers, 
animal and plant health, as well as the environmen t.  Exports taxes are still used to encourage 
processing;  for instance, exports of raw cashew nut s are subject to an 18% tax.  Mozambique does 
not have legislation on c ontingency trade measures. 
3. Mozambique’s standardization regime and its accreditation and certification procedures have 
not been modified since its first TPR in 2001.  In  general Mozambique adopts international standards 
and technical regulations and adapts them only when  it is deemed necessary for the domestic market.  
Imports to Mozambique are subject to sanitary a nd phytosanitary controls at the border, which the 
authorities claim are in accordance with international recommendations. 
4. Mozambique has largely liberalized goods a nd services prices, with the exception of the 
minimum prices for sugar and for petroleum products, which are adjusted on a monthly basis to follow world market prices.  In 2007, Mozambique  issued a general policy towards competition;  
nevertheless, the domestic market continues to be hampered by anti-competitive practices, and a regulatory framework is still to be adopted.  The supply of key inputs such as fixed-line telephony, 
electricity, and water, continue to be the preserve  of state enterprises, contributing to Mozambique’s 
supply-side constraints.  The State also has a st rong shareholding in numerous enterprises.  The new 
government procurement regime, in place since 2005, is improving the transparency of contracts, and their award procedures. 
5. Mozambique’s legislation on protection of in dustrial property rights, dating from 1999, was 
revised in 2006, and legislation on copyright w as enacted in 2001.  These regimes are harmonized 
with certain provisions of the WTO TRIPS Agreemen t.  In 2004, Mozambique issued a compulsory 
licence for local manufacture of anti-retroviral drugs, but the manufacturing facility has not been established.  Procedures to obtain industrial property rights have been streamlined.  Efforts to ensure 
respect for intellectual property rights, and in part icular to combat piracy and counterfeiting, are 
continuing.  In 2006, Mozambique introduced fines for the first time, to deter IPR infringement, 
including through counterfeiting, although no cases of infringement have yet been finalized.   Mozambique WT/TPR/S/209 
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(2) MEASURES DIRECTLY AFFECTING IMPORTS  
(i) Registration 
6. Importers/exporters in Mozambique must be licensed by the Ministry of Commerce.1  
Importers/exporters may become wholesalers or retailers (but not both) after obtaining a "licence to 
carry out a productive activity" from the Ministry of Industry and Trade.  Any economic operators 
(including importers) that wish to become distribut ors in urban areas are required to specialize in a 
selected activity (chosen from among 21 classes of products);  however, specialization is not required in rural areas, where trading est ablishments typically supply a wide range of goods to customers.
2  
Licence applications are to be accompanied by the appropriate documents indi cating proof of identity 
(for natural persons) or enrolment in th e companies register (for legal persons)3;  tax registration;  the 
contract, title or lease to the premises to be used  for the commercial activity;  and a drawing of these 
premises.  Mozambican traders are issued  with a numbered importer/exporter card. 
7. Foreign persons with the appropriate visa or residency permit, and foreign businesses 
established in Mozambique (as a branch, subsidia ry or agency), may also become traders.  
Requirements for foreign establishments are more onerous than for Mozambican applicants, as 
minimum capital requirements are higher, and the documentation required is more extensive 
(Chapter II(4)).  A numbered "foreign trade operator’s identification card" is issued, specifying whether the activity is that of an importer or an exporter. 
8. Additional registration requirements apply to importers of pesticides and medicinal products 
(section (v)).   
(ii) Customs procedures, and valuation 
9. Mozambique is a member of the World Cu stoms Organization (WCO), and its customs 
services make available all relevant texts, in principle, online.
4  Mozambique adopted the WTO 
Customs Valuation Agreement in 20025, and notified its customs legislation to the WTO in 2005.6  In 
July 2006, the State ended the contract with Crow n Agents to manage Customs operations, which are 
under the Revenue Authority.  The customs authoriti es, however, continue to have difficulties in 
effectively implementing the WTO Agreement, a nd Mozambique has requested technical assistance 
in order to build national capacity in this area (Annex II.1).  Customs c ooperates with neighbouring 
countries to ensure recourse to customs proc edures and enforce prohibitions on smuggling.  
Corruption remains a problem for users of customs services.7 
10. Mozambique's customs regimes include:  tempor ary importation;  temporary exportation;  re-
importation;  re-exportation;  customs transit;  stor age;  industrial free zones (section 3(vi));  and 
customs warehousing.8  Certain products are excluded from entry under some of these regimes.9 
                                                      
1 Decree No. 49/2004 of 17 November 2004. 
2 This means that importers cannot be both wholesalers and retailers in urban areas. 
3 The Commercial Code is contained in Decree No. 2/2005 of 27 December 2005. 
4 Mozambique Customs online information.  Viewed at:  http://www.alfandegas.gov.mz/legisla.htm (in 
Portuguese only), [10 July 2008]. 
5 Decree No. 38/2002 of 11 December 2002. 
6 WTO document G/VAL/N/1/MOZ/1 of 4 July 2005. 
7 CIRESP (2006). 
8 Decree No. 30/2002 of 2 December 2002. 
9 Tables I-IX of Decree No. 30/2002 of 2 December 2002. WT/TPR/S/209 Trade Policy Review 
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11. A customs clearing agent is required for all commercial imports and exports;  access is open 
to qualified Mozambican persons.  Customs cl earance procedures require a single document 
(Documento Unico,  DU), also available in abbreviated or simplified forms10;  a requirement to "pre-
declare" goods and pay 15% of the applicable cu stoms duties and taxes, in place since 1998, was 
eliminated in 2003 11;  and a stamp tax of Mt 50, which was in place in 2004, was removed in 2005.12  
The DU must be accompanied by:  the original invoi ce;  transport documents;  insurance certificate;  
phytosanitary certificate for products of plant orig in;  sanitary certificate for products of animal 
origin;  certificate of origin in case of access to  a preferential regime;  or any other documents 
required to support a request for exemption from customs duties or taxes.13   
12. Two further simplified customs clearance procedur es are available.  For goods not subject to 
PSI nor requiring a sanitary or phytosanitary certificate (section (vii) below), and whose f.o.b. value is 
at or below Mt 37,000 (approximately US$1,500), the importer may request access to the simplified procedure, requiring a  Documento Unico Abreviado (DUA) .  A simplified procedure requiring a  
simplified document  (Documento Simplificado, DS) is available for visitors and returning residents 
with consignments whose f.o.b. value is at or below Mt 12,000  (approximately US$500).  Small 
consignments of goods intended for personal use may be exempt from customs clearance.  The DUA 
and the DS must be accompanied by the same docum ents required for the DU.  Importers may use an 
advance declaration to expedite customs procedures,  so that shipments are cleared more rapidly upon 
arrival. 
13. Certain goods are subject to mandatory pre-shipment inspection (PSI).
14  First introduced in 
1998, PSI is provided exclusively by Intertek, under a contract expiring in 2009.  The contract covers 
PSI, training, and support to seven customs offices in Mozambique.  Since 2003, PSI applies to a 
"positive list" of products, which the Government is reducing progr essively.  In 2008, the following 
goods were subject to PSI:  frozen poultry;  flour (b ags over 20 kg);  cooking oil and raw cooking oil 
(containers over 10 litres);  sugar;  cement (bags over 100 kg);  chemical products (chapter 28 and 
29);  medicinal products (except those destined for pe rsonal use);  soaps;  matches and lighters;  new 
and used tyres (over five units);  silk, cotton, and synthetic fabrics;  used clothing (consignments over 
45 kg);  air conditioning, fridges, and freezers;  batteries;  and used vehicles.15  Intertek’s guidelines, 
which are available on the Internet, specify that th e exporter of a product subject to PSI must contact 
the local office, which will send a request for info rmation (RFI) letter, containing the information 
required for the Pre-Advice Form (PAF), which mu st be supplied to Mozambican Customs for all 
imports subject to inspection.16  Upon satisfactory inspection, which takes place in the country of 
origin, Intertek issues a Certified Simple Document ( Documento Unico Certificado, DUC) to the 
importer;  it requires a clean invoice, including a ll particulars required to determine the customs 
value.17   
                                                      
10 Ministerial Diploma No. 262/2004 of 22 December 2004. 
11 Ministerial Diploma No. 206/98 of 25 November 1998 introduced the pre-declaration requirement to 
replace import licensing requirements for all goods.  Mozambique News Agency, AIM Report No. 247 , 
3 February 2003.  Viewed at: h ttp://www.poptel.org.uk/mozambique-new s/newsletter/aim247.html#story10 
[2 May 2008]. 
12 Decree No. 6/2004 of 1 April 2004, modified by Decree No. 38/2005 of 1 April 2005. 
13 The CPI approves investment projects and issu es documentation for the application of duty 
exemptions (Chapter II). 
14 Ministerial Diploma No. 19/2003 of 19 February 2003. 
15 Order of service No. 43/GD/DGA/2006 of 1 July 2006. 
16 Exporters to Mozambique have access to Intertek 's guidelines on Intertek’s web site.  Online 
information.  Viewed at:  www.intertek-fts.c om/programmes/mozambique/62765 [2 May 2008]. 
17 Intertek’s guidelines stipulate a clean final invoice, with:  invoice number and date of issuance; 
names of the importer and exporter, as per the pro-forma in voice (and letter of credit, if applicable);  detailed Mozambique WT/TPR/S/209 
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14. Once a DU is officially lodged, Customs may in spect some or all of the goods declared (using 
risk-based methods of assessment).  Tax exempt tran sactions (e.g. for approved investment projects) 
are subject to a specific fee of Mt 50 for customs services rendered.  The time required to complete customs procedures depends on the regime selected  and the customs post;  Maputo handles about 80% 
of the DUs submitted, and reports that about 40% ar e cleared within 48 hours.  This is a significant 
improvement from the 18 days estimated in 2000 
by the IFC’s Foreign Investment Advisory Service.  
However, according to World Bank indicators, Mozambique ranks 140th in the world (out of 178 
countries) for ease of trading across borders;  10 doc uments and on average 32 days are required to 
clear a typical import operation, and the average cost of a container is US$1,475.18   
15. A pilot programme for computerization of customs procedures is under way.  The 
authorities intend to introduce an online facility to allow commercial agents to submit declarations 
and an e-taxation system for the payment of customs duties and taxes.  Complaints regarding the tariff 
classification of goods are handled through the Ta xation Council, on which clearing agents are 
represented, and which reports to the Revenue Aut hority.  Disputes regarding customs valuation are 
handled by the Customs Tribunal, but cases are rare. 
(iii) Rules of origin 
16. Mozambique does not use any national rules of origin for non-preferential purposes.  It uses 
rules of origin to establish originating status fo r imports from preferential trade agreement including 
SADC members (Chapter II(3)). 
17. Annex I to the SADC Trade Protocol on rules of origin, sets out the basic requirements for 
goods to be regarded as "originating":  the product must have been wholly obtained in one of the 
Parties19;  or the non-originating materials incorporated in the product must have undergone 
"sufficient working or processing" in accordance with the conditions set  out in Appendix I;  or the 
value of all non-originating materials must not exceed 10% of the ex-works price of the good 
(tolerance rule).  There is no regime-wide rule of origin but Appendix I lists the specific criteria (mostly with respect to HS tariff headings (at va rious levels)) that non-originating materials must 
meet for a final good to acquire originating status.
20  SADC has developed its own model certificate of 
origin. 
18. According to Annexes II and III of the Agre ement between Mozambique and Malawi, the 
basic requirements for goods to be regarded as "ori ginating" are that the product must have been 
wholly obtained in one of the Parties;  or the value-added resulting from the production process is at 
least 25% of the ex-factory cost of the goods.  Similar requirements are set out in Annexes I, III, and IV of the Agreement between Mozambique and Zimbabwe.  
(iv) Customs duties 
19. Goods imported into Mozambique are subject to dut ies and taxes applied at the border.  As of 
2003, Mozambique’s major tariff liberalization had placed all lines at rates of 2.5%, 5%, 7.5%, 20%, 
                                                                                                                                                                    
 
quantity and description of goods;  all unit prices and extensions;  total price and applicable incoterms (e.g. 
f.o.b.);  the gross and net weights of the consignment; any shipping marks. 
18 World Bank (2008). 
19 Article 4 specifies the type of goods that can be regarded as being wholly produced in the member 
states.  It gives a list of the products in this category and establishes the criteria that a vessel must satisfy for it to 
be regarded as forming part of the territory of a member state. 
20 For further details, see WTO document WT/REG176/4, 12 March 2007. WT/TPR/S/209 Trade Policy Review 
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or 25%.21  The tariff remains largely unchanged in 2008, except for the reduction to 20% of the single 
tariff line that bore a 25% tariff in 2003.22  The taxable base for the tariff is the c.i.f. customs value.  
In addition, goods and services may be subject to:  VAT at 17%;  an excise tax (specific consumption 
tax), levied on tobacco products, alcoholic beverages, and luxury pr oducts;  and a surtax, levied only 
on sugar, cement, and galvanized steel, steel sheets, and tubes.   
20. In 2007, customs revenue amounted to approximate ly Mt 12.7 billion, about three times the 
2001 total (Table III.1).  In 2007, customs revenue from imports was ma inly generated by:  the tariff 
(30%);  VAT (52%);  and the specific consumption tax/excise tax (6%).  Customs duties account for a relatively smaller contributi on to revenues than VAT.   
Table III.1 
Itemized customs revenue from imports, 2001-07 
(Mt million) 
 2001 2002 2003 2004 2005 2006 2007 
Customs tariff 1,477 1,851 2,229 2,223 2,816 3,286 3,835 
VAT 2,034 2,621 3,037 3,340 4,158 5,687 6,698 
Excise duty 251 317 407 485 569 696 735 
Customs user fee .. 12 12 17 21 8 9 
Other 21 63 22 73 .. 1,175 1,401 
Total 3,782 4,863 5,708 6,137 7,565 10,854 12,677 
.. Not available. 
Source : Information provided by the Mozambican authorities. 
(a) Applied MFN tariff 
21. Mozambique's 2008 applied tariff comprises 5,203 eight-digit lines of the 2007 Harmonized 
System (HS).  As was the case at the time of the previous Review, all the rates are ad valorem .  For 
2008, the simple applied average MFN rate is 10.1% (Table III.2), down from 13.8% in 2001;  this is 
as a result of the 2002 tariff reductions (effective as of 2003).  However, this reduction has not greatly 
altered the structure of the tariff itself.  Protecti on is higher on agricultural products (13.5%) than on 
non-agricultural products (9.5%) (WTO definitions, excluding petroleum products).  By HS Chapter, 
the highest average tariffs continue to be on basic food products such as meat, fish, fruits, vegetables 
and products thereof, as well as beverages and clothing (Table AIII.1).  Furthermore, as noted above, 
sugar, cement, and certain st eel products are subject to ad valorem  surtaxes (section (b) below), which 
are not taken into account in the figures reported in this section. 
22. The 2008 applied tariff, comprises five rates:  zero, 2.5%, 5%, 7.5%, or 20% (Chart III.1);  
two thirds of lines are assessed at 7.5% or less, and one third at 20%.  In contrast, at the time of Mozambique's Review in 2001, about 35% of lines we re at 30%;  the reduction of the highest tariff 
rate (from 30% to 20%) applies to food, beve rages, and clothing may contribute to poverty 
alleviation, as such products typically account fo r an important share of consumer expenditure, 
especially of the poor in urban areas.  Mozambi que’s 20% tariff on these goods, however, still adds 
significantly to the prices of imported necessities and basic goods. 
                                                     
 
21 Decree No. 36/2002 of 11 De cember 2002 and De cree No. 39/2002 of 26 December 2002. 
22 Law No. 03/07 of 7 February 2007.  The rate of 25% applied to HS 8205.51.00 reduced to 20%. Mozambique WT/TPR/S/209 
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Table III.2 
Structure of MFN tariffs in Mozambique, 2008 
(Per cent) 
  2008 U.R.f 
1.   Bound tariff lines (% of all tariff lines) 14.2 14.2 
2.   Duty-free tariff lines (% of all tariff lines) 2.9 0.0 
3.   Non- ad valorem  tariffs (% of all tariff lines) 0.0 0.0 
4.   Tariff quotas (% of all tariff lines) 0.0 0.0 
5.   Non- ad valorem  tariffs with no AVEs (% of all tariff lines) 0.0 0.0 
6.   Simple average tariff rate 10.1 97.6 
 Agricultural products (WTO definition)a 13.5 100.0 
 Non-agricultural products (WTO definition)b 9.5 6.6 
 Agriculture, hunting, forestry and fishing (ISIC 1) 12.4 100.0 
 Mining and quarrying (ISIC 2) 3.7 n.a 
 Manufacturing (ISIC 3) 10.0 96.4 
7   Domestic tariff "spikes" (% of all tariff lines)c 0.0 0.0 
8.   International tariff "peaks" (% of all tariff lines)d 33.4 97.4 
9.   Overall standard devia tion of applied rates 7.3 14.8 
10.   "Nuisance" applied rates (% of all tariff lines)e 0.0 0.0 
a WTO Agreement on Agriculture definitions. 
b Excluding petroleum. 
c Domestic tariff spikes are defined as those exceeding three times the overall simple average applied rate (indicator 6). 
d International tariff peaks are defined as those exceeding 15%. e Nuisance rates are those greater than zero, but less than or equal to 2%. 
f Based on the 2008 tariff schedule;  calcula tions are based on 741 bound tariff lines. 
n.a. Not applicable. 
Source:  WTO Secretariat calculations, based on data provided by the Mozambican authorities. 
(2.9)(21.5)
(12.5)(29.8)(33.4)
02004006008001,0001,2001,4001,6001,8002,000
0.0 2.5 5.0 7.5 20.00102030405060708090100
The figures in brackets correspond to the percentage of total lines.  
WTO Secretariat calculations, based on data  provided by the Mozambique authorities.Chart III.1
Breakdown of applied MFN tariff rates, 2008
Number of tariff lines
Note:
Sourc e:Percentage
Number of lines 
Cumulated percentage (right-hand scale)
 WT/TPR/S/209 Trade Policy Review 
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23. The coefficient of variation of 0.7 indicates so me dispersion of tariff rates and hence different 
levels of protection in the economy using ISIC (Rev. 2), agriculture remains the most heavily 
protected sector (average tariff of 12.4%), follo wed by manufacturing (10.0%), and mining (3.7%) 
(Table III.3).  By stage of processing, the tariff shows mixed escalation:  it is negative from raw 
materials to semi-processed produc ts (average protection of 10.1% and 7.5% respectively), and then 
positive from semi-processed to fini shed products (with an averag e level of protection of 11.6%) 
(Table III.3).  A more detailed breakdown by activ ity reveals that escalation is evident in most 
industries, including textiles and clothing, wood pr oducts, chemicals, metal products (Chart III.2).  
However, the overall tariff structure closely reflects the prevailing pattern of escalation, in particular, 
in the food (including beverages and tobacco), a nd non-metallic mineral produc ts and metal products, 
in which escalation is negative from the raw material s to semi-processed stage (Chart III.2).  Such a 
tariff structure tends to discourage investment in  the processing industries because the heavy taxation 
of imported inputs adds to production costs or reduces the competitiveness of products manufactured 
in Mozambique.  Thus, the tariff structure may not be conducive to dive rsification of economic 
activity through manufacturing.  It contributes to investor's arguments for duty and tax concessions, 
including under the Industrial Free Zone (IFZ) regime (Chapter II(4)). 
Table III.3 
Summary analysis of the MFN tariff, 2008  
  Applied 2008 rates 
Analysis No. of lines Simple avg. 
tariff (%) Range tariff 
(%) Std-dev 
(%) CV   
Imports 2006a 
 (US$ million) 
Total 5,203 10.1 0-20 7.3 0.7 2,869.3 
By WTO definitionb             
Agriculture 722 13.5 0-20 7.9 0.6 371.9 
Live animals and products thereof 98 17.6 0-20 6.0 0.3 15.0 
Dairy products 27 15.2 0-20 7.7 0.5 30.0 
Coffee and  tea, cocoa, sugar, etc. 125 15.1 0-20 6.5 0.4 34.9 
Cut flowers and plants 33 5.7 2.5-20 6.9 1.2 0.6 
Fruit and vegetables 160 18.8 2.5-20 4.1 0.2 19.4 
Grains 22 7.5 2.5-20 7.9 1.1 179.5 
Oil seeds, fats, oils, and their products 80 9.2 2.5-20 7.2 0.8 53.4 
Beverages and spirits 47 18.1 7.5-20 4.5 0.2 12.6 
Tobacco 9 14.2 2. 5-20 8.8 0.6 18.1 
Other agricultural products 121 5.0 0-20 5.0 1.0 8.3 
Non-agriculture (excl. petroleum) 4,458 9.5 0-20 7.1 0.7 1,556.2 
Fish and fishery products 129 19.3 0-20 3.2 0.2 31.8 
Mineral products, precious stones, and 
precious metals 324 7.7 0-20 5.5 0.7 127.5 
Metals 591 6.9 2.5-20 4.5 0.6 159.3 
Chemicals and photographic supp lies 865 5.1 0-20 5.7 1.1 181.3 
Leather, rubber, footwear, and tr avel goods 167 11.3 0-20 7.1 0.6 47.4 
Wood, pulp, paper, and furniture 259 9.8 0-20 6.6 0.7 101.0 
Textiles and clothing 815 16.0 0-20 6. 7 0.4 59.0 
Transport equipment 142 7.8 0-20 5.8 0.7 303.6 
Non-electric machinery 519 6.2 5-20 3.5 0.6 259.8 
Electric machinery 256 8.9 2.5-20 5.2 0.6 136.7 
Non-agricultural articles n.e.s. 391 12.8 0-20 6.9 0.5 148.8 
By ISIC sectorc      
Agriculture, hunting, forestry, and fishing 317 12.4 0-20 8.6 0.7 130.4 
Mining 97 3.7 2.5-20 3.3 0.9 8.5 
Manufacturing 4,788 10.0 0-20 7.2 0.7 2,082.4 
Table III.3 (cont'd) Mozambique WT/TPR/S/209 
 Page 35 
 
 
  Applied 2008 rates 
Analysis No. of lines Simple avg. 
tariff (%) Range tariff 
(%) Std-dev 
(%) CV   
Imports 2006a 
 (US$ million) 
By stage of processing       
Raw materials 658 10.1 0-20 8.3 0.8 298.8 
Semi-processed products 1,706 7.5 0-20 6.4 0.9 281.4 
Fully-processed products 2,839 11.6 0-20 7.1 0.6 1,724.9 
a The total of imports is higher than the sum of sub-items, as imports to the valv e of US$564.2million are not classified in th e 
Harmonized System. 
b Does not take into account 23 tariff lines on petroleum products. 
c International Standard Industrial Classification (Rev.2).   Electricity, gas and water are excluded (1 tariff line). 
Note: CV = coefficient of variation. 
Source : WTO Secretariat estimates, based on data provided by  the Mozambique authorities;  2006 import data from 
UNSD, Comtrade database. 
0.05.010.015.020.025.0Chart III.2
Tariff escalation by ISIC 2-digit industry, 2008
Sourc e: WTO Secretariat estimates, based on data provided by the Mozambique authorities.
All products
Food,
beverages
Textiles,
apparel
Wood products
Paper, printing
Chemicals ,
plastics
Non-metalli c
minera l
products
Basic meta l
products
Fabricated meta l
products
Other
manufacturin gNOT APPLICABLEAgriculture
MiningRaw materials Semi-processed Fully processed
NOT APPLICABLEPer cent
 
(b) Import surtaxes 
24. As at the time of Mozambique’s first TPR in 2001, three product categories are subject to 
import surtaxes: sugar; cement; and certain galvanized steel products. 
Sugar  
25. Raw and processed sugar are subject to import su rtaxes, in addition to the basic duty of 7.5%, 
applied on the c.i.f. value of imports.  The two surtaxes, which are variable, are set on a monthly WT/TPR/S/209 Trade Policy Review 
Page 36 
 
 
basis, and depend on the differences between the Mozambican minimum prices (US$385/tonne for 
raw sugar and US$450/tonne for processed sugar) and world market reference prices expressed in 
c.i.f. value.23  Regarding the operation of this regime, the authorities clarified that the Mozambican 
Association  of Sugar Producers  (APAMO) has exclusive distribution ri ghts in Mozambique;  this is 
aimed at preventing the minimum price policy from being undercut.  As Mozambique does not have 
sufficient processing capacity, sugar companies export raw sugar to South Africa and import the processed sugar, paying the surtax on the value of th e processed imports net of the value of raw sugar 
exports.  Such imports are exempt from VAT.  Industrial importers of sugar, such as beverage 
manufacturers, pay the surtax on the full value of their processed sugar imports. 
26. The sugar surtaxes have been in place since 1999
24, when the authorities adopted a fixed 
domestic price system, implemented through a variab le import tax system to absorb world market 
price fluctuations.  The authorities claimed that gi ven the distorted international sugar prices such a 
system provided greater certainty to the investors th at rehabilitated the estates devastated in the Civil 
War (Chapter IV(2)(ii)).25  Inputs used in the domestic sugar industry, as well as sugar itself, are 
exempt of VAT (section (d) below).  
Cement  
27. The Mozambican Government imposed a surtax on imported cement (HS 2523.29.00) on 
10 March 1997.  The surtax is applied to the c.i.f.  value of imports.  It was reduced from 12.5% in 
2001 to 10.5% in 2003, and remains at that level.  This measure followed complaints that South 
African cement was being dumped on the Mozambican market.  The surtax applies to cement 
imported from all origins. 
Galvanized steel, steel sheets, and tubes  
28. The Mozambican Government imposed a surtax  on imports of certain galvanized steel 
products beginning on 25 August 1997.  The measure followed complaints that steel sheets from Zimbabwe and South Africa were being dumped on the Mozambican market.  The surtax is applied to 
the c.i.f. value of imports.  In 2003, the surtaxes on galvanized steel (HS 7210.41.00), and on steel 
sheets and tubes (HS 7306.30.00 and HS 7306.60.00) , were 20% and 10.5% respectively, and are still 
in place.  The surtaxes apply to imports from all origins.   
(c) Bindings 
29. Mozambique's Uruguay Round concessions on go ods are contained in Schedule CXIX.  
Under its Uruguay Round commitment s, Mozambique bound tariffs on all agricultural products at a 
ceiling rate of 100%.  Bindings on non-agricultural products are very limited;  only 19 lines at the 
eight-digit level (HS 1996 nomenclature) were bound, at either 5% or 15%.
26  In total, only 14.2% of 
Mozambique’s tariff lines are bound.  "Other duties and charges" on all bound items are bound at 100%.  
                                                     
 
23 Ministerial Diploma No. 56/2001 of 30 March 2001 sets out the mechanism.  For February 2008, 
Order of Service No. 002/DGA/2008 of 28 January 2008 sets the applicable reference prices (per ton) for raw 
(US$347.18) and processed sugar (US$388.09), and the as sociated surtaxes on raw sugar (10%) and processed 
sugar (15%).   
24 Decree No. 74/99 of 12 October 1999. 
25 USAID (2004).   
26 The 19 lines cover parts of nucl ear reactors, boilers, machinery, an d mechanical appliances, and are 
all included in HS Chapter 84. Mozambique WT/TPR/S/209 
 Page 37 
 
 
(d) Internal taxes 
30. Mozambique has applied VAT at a standard ra te of 17% since 1999.  A new regime is in 
place for 2008.27  VAT is assessed on imported goods from all origins on the c.i.f. customs value.  In 
principle, exports are zero-rated. 
31. Under the 2008 VAT regime, some goods continue to be exempt from VAT including 
bicycles, bread, condoms, corn, corn flour, fresh a nd refrigerated tomatoes, garlic, jet fuel, lamp oil, 
onions, powdered milk for children, rice, flour, salt, smoked fish, and wheat.28  The sugar industry 
benefits from a VAT exempti on, until 31 December 2010.29  It appears that an exemption also applies 
until 2010 to cooking oils and soaps, and imported inputs used by the related industry.   
32. Specific internal taxes apply to petroleum products at the pump30, which are mainly imported; 
these were last adjusted in 2004 (Chapter IV(3)).31   
33. Mozambique levies consumption taxes (referre d to as excise taxes) on a wide range of 
products, including alcoholic beverages;  cigars , cigarettes and tobacco;  perfumes and cosmetic 
products;  precious metals, gemston es, and jewellery;  automobiles, motorcycles, motor boats, and sail 
boats.32  Excise taxes are assessed on the c.i.f. valu e plus applicable customs duties (but excluding 
VAT).  In 2002, Mozambique reduced excise ta xes on most products from 20-75% to 15-65%.33  The 
highest excise duty of 65% applies to cigars, ciga rettes, and tobacco.  Small quantities of imported 
tobacco products and alcoholic beverages are exem pt.  Manufactured tobacco intended for export is 
also exempt.  Second-hand vehicles are subject to  reduced excise taxes of 5%.  Chibuku brand beer, 
made of sorghum and corn (HS 2206.00.10), is exempt from the 40% excise tax while other beer 
(HS 2206.00.90) is not;  the authorities note that Chibuku is an energy drink, of lower alcoholic 
content than other beer.  
(e) Tariff preferences 
34. Mozambique grants preferences to eligible products originating in other SADC member 
countries, in accordance with the tariff liberalizati on schedule (Chapter II(3)(ii)(b)), and in Malawi 
and Zimbabwe (Chapter II(3)(ii)(e)). 
(f) Duty and tax exemptions and concessions 
35. Goods admitted duty free of customs include impor ts destined for use by diplomatic missions, 
international or charitable organizations;  military goods destined for use by the armed forces;  and 
goods imported in connection with removals and small consignments.  Customs duty and/or tax 
exemption is also granted to goods imported in  connection with approved investment projects 
(Chapter II(4)(iii)) and investments under the IFZ, as well as specific regimes agreed prior to 2003 
                                                      
27 Law No. 32/2007 of 31 December 2007. 
28 Article 9:10 of Law No. 32/2007 of 31 December 2007. 
29 Article 9:13 and Article 12:1(a) of  Law No. 32/2007 of 31 December 2007. 
30 Law No. 15/2002 of 26 June 2002. 
31 Decree No. 56/2003 of 24 December 2003. 
32 Decree No. 37/2002 of 11 December 2002. 
33 Decree No. 52/98 of 29 September 1998, as modified by Decree No. 31/99 of 24 May 1999;  and 
Decree No. 37/2002 of 11 December 2002. WT/TPR/S/209 Trade Policy Review 
Page 38 
 
 
(e.g. sugar).  Contracted migrant miners work ing in South Africa benefit from customs and VAT 
exemption for goods imported upon their periodic returns.34  
(v) Prohibitions, quantitative restrictions, and licences 
36. Mozambique’s regime on import prohibitions, quantitative restrictions, and licensing remains  
unchanged since its first TPR in 2001.35  Mozambique has not notified its licensing regime or any 
quantitative restrictions to the WTO.  It prohibits, inter alia,  the importation of pornographic 
materials, counterfeit products, pi rated goods, and goods bearing false indications of origin.  These 
prohibitions and other import restrictions are main tained on health and moral grounds and to comply 
with international conventions to which it is a party.  Other speci fic import regulations apply to:  
playing cards;  arms, explosives, and fireworks;  used tyres (requiring an authorization from the 
Ministry of Transport);  plant and vegetable matt er (requiring a phytosanitary certificate);  animals 
and products thereof (requiring a sanitary certificat e);  medicinal products (requiring authorization 
from either the health or veterinary services);  prec ious metals (requiring the authorization of the Bank 
of Mozambique );  currency and notes imported by the Ba nk of Mozambique;  and narcotic drugs 
(requiring authorization from the health services).  In 2007, Mozambique adopted a regime for 
genetically modified organisms (GMOs), which prov ides for such imports and products containing 
GMOs to be subject to prior approval.36 
37. Mozambique also applies prohibitions and licences under the multilateral environmental 
agreements to which it is a party.37  Raw tobacco may only be imported by producers of tobacco 
products.38   
38. Imports of medicinal products, which account  for a substantial share of domestic 
consumption, may only be imported by registered im porters.  An import authorization is required for 
each consignment and is subject to 0.15% tax on the f.o. b. customs value.  For this authorization to be 
granted, the products must figure in Mozambique’s  Registry of Medicines.  An application for 
marketing approval is made to the Council of Medicin es (COMED) and, if it is  successful, results in 
enrolment in the Registry of Medicines.  In prac tice, however, the Ministry of Health may authorize 
the importation of unregistered products.  In the case of an imported product, the application must be 
accompanied by a certificate issued by the Ministry of Health of the country of origin stating that the 
product is manufactured by an enterprise licensed to this end, and a marketing authorization from the 
country of origin, established according to WHO r ecommendations for pharmaceutical products  to be 
traded internationally.39  Registration is valid for five years renewable.  Pharmaceuticals and health 
products are distributed through the public health car e system or through private dispensing units.  A 
similar import regime applies to pesticides, which ma y only be imported by registered importers.  The 
authorization to import is subject to a 0.15% tax on the f.o.b. customs value.  The pesticides must 
                                                      
34 The authorities coordinate contracts of migrant miners  for South African mines.  Over half the salary 
of a miner is paid to the Government for the benefit of miners' families in Mozambique, while a small portion of 
the wages are paid to the workers them selves who, in return, are allowed duty-free entry for items purchased in 
South Africa. 
35 Tables I and III of Decree No. 30/2002 of 2 December 2002. 
36 Decree No. 6/2007 of 25 April 2007. 
37 UNEP (undated). 
38 Article 22, Ministerial Diploma No. 176/2001 of 28 November 2001. 
39 WHO online information.  Viewed at:  h ttp://www.who.int/medicine s/areas/quality_safety/ 
regulation_legislation/certification/en/ [5 May 2008]. Mozambique WT/TPR/S/209 
 Page 39 
 
 
figure in Mozambique’s Registry of Pesticides to be authorized for importation by the Ministry of 
Commerce.40 
39. Mozambique complies with the international trad e sanctions stipulated by the United Nations 
Security Council and the regional bodies to which it belongs. 
(vi) Standardization, accreditation, and certification 
40. Mozambique’s standardization regime and its accreditation and certification procedures have 
not been modified since its previous Review.  The Instituto Nacional de Normalização e Qualidade 
(INNOQ), established in 199341, is the administrative authority in charge of policy, which also 
concerns metrology and quality, and is under the te chnical supervision of the Ministry of Commerce. 
INNOQ has notified the ISO/IEC Secretariat of its  acceptance of the Code of Good Practice annexed 
to the WTO TBT Agreement.42  A demand for a standard typically originates in the private sector, via 
the Confederation of Economic Associations  (Confederação das Associações Económicas , CTA), and 
is communicated to INNOQ.  It is allocated to  a working group, which examines the available 
international standards (ISO, Codex, IEC), then tr anslates the selected standard, which is adopted and 
published in the Government Gazette  (Boletim da Republica ).  To date, INNOQ’s four committees 
have issued 72 standards, and have  an ambitious programme for 2008.43  Under the Mozambican 
regime, INNOQ-issued standards may become ma ndatory after adoption as a regulation by the 
Ministry concerned.  The technical regulations adopted since 2001 concern salt, mineral water and 
cement.44  In the absence of a national testing laborat ory, no certification is required for imported 
products. 
41. A national strategy on quality was adopted in 2003.45  INNOQ has developed voluntary 
standards on the quality, packing, and labelling of  many agricultural products, including bananas, 
butter, cashew nuts, copra, honey, papayas, and pi neapple, which are among Mozambique’s principal 
exports. 
42. INNOQ participates in discussions on standards,  quality, accreditation, and metrology held 
under the auspices of SADC.  As a correspondent member of the ISO, Mozambique does not take an 
active part in the technical and policy-making work of the organization, but receives its 
documentation on standards. 
(vii) Sanitary and phytosani tary (SPS) measures 
43. Mozambique’s sanitary and phytosanitary measure s have not been revised substantially since 
2001.  Responsibility for such measures is spread ac ross several ministries, including the Ministries of 
Agriculture and Fisheries, responsible for sanitary measures relating to animal and plant health, and 
animal medicine and pesticides;  and the Minist ry of Health, responsible for regulation of, and 
                                                      
40 Decree No. 15/2002 of 11 September 2002. 
41 Decree No. 2/93 of 24 March 1993.   
42 Notified to the WTO by the ISO Secretariat in  WTO Document G/TBT/CS/N/69 of 8 July 1997. 
43 Committee 1 is concerned with food, health, agri-industry, fisheries, chemical products, and  
environment;  Committee 2 covers electrical and electronic products, and communications;  Committee 3 covers 
basic standards for health, safety and environment;  and Committee 4 covers mechanical products, civil 
engineering, and transportation. In accordance with the agenda establis hed by INNOQ’s governing board, the 
technical sub-committees develop preliminary draft standards on which representatives of the sector concerned 
are then consulted. 
44 Information provided by the authorities. 
45 Resolution No. 51/2003 of 30 November 2003. WT/TPR/S/209 Trade Policy Review 
Page 40 
 
 
standards relating to, food safety and pharmaceuti cal products.  In addition to the regulatory 
framework for imported medicines and pesticides,  Mozambique has a regu latory frameworks for 
animal health46, and for seed production, trade, quality control, and certification.47  The only SPS 
measures on imports are based on international standards drawn up by the World Organization for 
Animal Health (OIE), the International Plan t Protection Convention (IPPC), and the Codex 
Alimentarius.  Fishery products for export to EC markets are subject to specific regulations. 
44. With respect to sanitary measu res, the authorities observe the OIE recommendations for all 
diseases.  For example, Mozambique bans the importation of live animals from most countries, apart from those declared free of foot and mouth disease by the OIE.  Measures are also taken with respect 
to other animal diseases, including avian influen za and bovine spongiform encephalopathy (BSE). 
45. In accordance with Mozambique’s regime fo r phytosanitary inspections and control
48, certain 
imported products (plants and plan t products and the products of ap iculture) require a Phytosanitary 
Licence of Importation, which in turn requires a ph ytosanitary certificate issued by the country of 
origin.  For seeds, an additional requirement is a cer tificate stating that the product in question is not 
genetically modified, as their impor tation is prohibited by Mozambique.49  Similarly, imports of 
animals and products of animal origin must obtain a Sanitary Licence of Importation, issued by the 
veterinary authorities.50 
(viii) Packaging, marking, and labelling 
46. Compulsory packaging, marking, and labelling requirements apply to imported products.  For 
example, pre-packaged foods must be labelled in Portuguese, indicating the origin, the sell-by or use-
by date, the ingredients, the method of storag e, and the name and registration number of the 
manufacturer.  Use of the metric system is compulsory . 
(ix) Contingency measures 
47. Mozambique does not have any legi slation on contingency measures. 
(x) Other measures 
48. No agreements have been signed with forei gn governments or enterprises with a view to 
affecting the volume or value of goods and services exported to  Mozambique.  Likewise, the 
authorities are not aware of any such agreements  between Mozambican and foreign companies.  
(3) MEASURES DIRECTLY AFFECTING EXPORTS  
(i) Registration 
49. Exporters in Mozambique must be licensed by the Ministry of Commerce (section (2)(i) 
above).  Traders wishing to export under a preferential regime must also register with the Ministry of 
Commerce.  Further requirements apply to exporters of cashews (Chapter IV(2)(iii)(d)), and to mining 
and petroleum products (Chapter IV(3)(i)). 
                                                      
46 Decree No. 08/2004 of 1 January 2004. 
47 Decree No. 184/2001 of 19 December 2001. 
48 Ministerial Diploma No. 134/92 of 2 September 1992. 
49 Article 33, Ministerial Diploma No. 184/2001 of 19 December 2001. 
50 Article 21, Decree No. 08/2004 of 1 January 2004. Mozambique WT/TPR/S/209 
 Page 41 
 
 
(ii) Customs procedures 
50. Exports are subject to the same customs clear ance procedures as imports (section (2)(ii)), 
requiring notably a Documento Unico (DU) .  In addition, exporters seeking access to a preferential 
regime (Chapter II(3)(ii))51, must obtain a certificate of origin from the Ministry of Commerce, which 
is responsible for certifying that rules of origin are met.  Phytosanitary or sanitary certificates may 
also be required.  According to the World Bank,  clearance of typical export operation takes on  
average 26 days, and the average cost of a container for a typical export operation is US$1,200.52 
51. Entry and export of foreign currency is regist ered for the purpose of gathering balance-of-
payments statistics (Chapter I(2)). 
(iii) Export duties and taxes 
52. Mozambique imposes an export tax of between 18% and 22% of the f.o.b. customs value on 
raw cashews, as determined by  the cashew institute INCAJU53;  since the 2003-04 cashew campaign 
the rate has been 18%.54  Although no other specific export tax appears to be applied, certain items, 
which are almost entirely exported, are subject to charges, e.g. cotton (Chapter IV(2)(iv)), fishery 
products (Chapter IV(2)(iv)), forestry produc ts (Chapter IV(2)(v)), and mining products 
(Chapter IV(3)(i)).  For instance, a royalty of Mt 2,000/m3 applies to exports of unprocessed precious 
tropical wood, with a 25% reduction applying if processed.55  
(iv) Prohibitions, quantitative restrictions, and licences 
53. Mozambique’s export prohibitions, quantitative restrictions, and licencing regime remain 
largely unchanged since 2001.56  Mozambique prohibits exports of  counterfeit products, pirated goods 
and goods bearing false indications of origin, as well as works of art or antiquities, ivory, and objects made of ivory.  Special export regulations apply to certain products includi ng plant and vegetable 
matter (requiring a phytosanitary certificate);  animals and products thereof (requiring a sanitary 
certificate);  products subject to export taxes, su ch as cashews;  precious metals, gemstones, and 
mineral products (requiring licensing by the Ministry of Mining (Chapter IV(3)(i));  gold and silver, 
which may only be exported by the Bank of Mozambi que;  and narcotic drugs (requiring authorization 
from the health services).  In addition, Mozambique  applies prohibitions and licences to exports of 
fauna and flora under multilateral environmen tal agreements to which it is a party.
57  Since 2002, a 
prohibition applies to exports of unprocessed wood as defined in Annex I of th e regulations, reserved 
to local processors, but not to exports of unpro cessed precious tropical wood species, such as ebony 
and rosewood.58   
(v) Export subsidies, assistance, and promotion 
54. Mozambique does not provide any export subsidies. 
                                                      
51 Such as SADC and MMTZ provisions on textile and clothing exports, and the Interim Trade 
Agreement with the EC (Ministerial Diploma No. 141/ 2001 of 26 September 2001), AGOA (Ministerial 
Diploma No. 170/2001 of 14 November 2001, as amended.) or China (Ministerial Diploma No. 146/2005 of 
3 August 2005). 
52 World Bank (2008). 
53 Law No. 13/99 of 1 November 1999. 
54 Diploma Ministerial No. 113/2003 of 30 September 2003. 
55 Decree No. 12/2002 of 6 June 2006. 
56 Tables II and IV of Decree No. 30/2002 of 2 December 2002. 
57 UNEP (undated). 
58 Decree No. 12/2002 of 6 June 2002. WT/TPR/S/209 Trade Policy Review 
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55. Mozambique’s Instituto para a Promoção de Exportações  (IPEX)59 takes on the role of a 
traditional trade promotion body.  It promotes exports from Mozambique in destination markets it 
identifies, and advises exporters and investors on market access opportunities and export-related 
logistical services.  Its core activity is organizing missions to trade fairs;  according to information 
provided by IPEX, 50 companies were taken to 28 trade fairs over the period 2003-05.60  Its annual 
budget is US$600,000 (of which 35% is dedicated to tr ade fairs);  it does not charge exporters for its 
services.   
(vi) Industrial Free Zone (IFZ) regime 
56. The Industrial Free Zone (IFZ) regime, in place since 1999, remains Mozambique’s main 
export promotion strategy.61  The largest IFZ enterprise is Mozal, producing aluminium from 
imported alumina.  Aluminium is Mozambique’s lead ing export (Chapter I(3)).  Mozal’s decision to 
invest in Mozambique was partly motivated by the electricity tariffs that it was able to obtain from 
state-owned Electricidade de Moçambique  (EDM) (US$ 1.03/kWh), which are considered low by 
international standards.62  The low cost of electricity was al so a factor in the projects established 
under the IFZ regime to exploit Mozambique ’s titanium-bearing sands, which include the 
Mozambique Titanium Minerals project (M oma) and the Limpopo Corridor Sands project 
(Chapter IV(3)(i)). 
57. An investor wishing to establish an IFZ must first obtain authorization from the Council of 
Ministers for land usage rights and to install security systems.63  This authorization is contingent 
upon:  total permanent employment positions for at least 500 Mozambican nationals;  individual 
enterprises wishing to establish as IFZs are require d to create permanent employment positions for at 
least 250 Mozambican nationals, and export at least 85% of annual production.  An IFZ can also 
accommodate enterprises that supply to other enterp rises established in an IFZ.  Exploration and 
extraction of natural resources, and processing of ca shew nuts, fish, and prawns, are not accepted as 
IFZ activities. 
58. Proposals for IFZs are sent to the Council of Industrial Free Zones (CZFI) for examination 
and submitted to the Council of Ministers for authoriza tion.  Once this is obtained, the CZFI issues the 
investor an IFZ Developer Certificate, which allo ws the holder an exemption from the application of 
customs duties, VAT, and excise taxes on imports of construction materials, machinery, equipment, 
accessories, accompanying spare parts, and other goods destined for the establishment and operation 
of the IFZ.  The CZFI also issues IFZ Enterprise Certificates to companies wishing to establish and 
operate in an IFZ.  Such enterprises also bene fit from an exemption from customs duties, VAT, and 
excise taxes on imports of inputs, equipment, and ma terials required to operate.  Under the current 
IFZ regime, holders of IFZ Developer Certificates or  Enterprise Certificates are granted a reduction of 
60% on the standard corporate tax rate on their prof its (the standard rate is 32%), for ten years 
following the start of production;  older projects benefit from higher reductions.64  Enterprises 
established in an IFZ are subject to the exchange regi me applied in the rest of the territory, but benefit 
from a simplified procedure for the repatriati on of profits or dividends (Chapter I(2)). 
                                                      
59 IPEX online information.  Viewed at:  http://www.ipex.gov.mz/en/. 
60 USAID (2006e). 
61 Decree No. 62/99 of 21 September 1999, as modified by decree No. 35/2000 of 17 October 2000 and 
Decree No. 16/2002 of 27 June 2002. 
62 Bucuane and Mulder (2007).  
63 In accordance with the Land Law, the land on which an IFZ is established is leased for a renewable 
period of 50 years. 
64 For example, the Moma project established in 2000 will pay a tax of 1% of turnover after year six of  
production.  "MOMA Project – Mining & Implemen tation Agreements".  Viewed at:  http://www. 
kenmareresources.com/moma/agreements.asp [2 October 2008]. Mozambique WT/TPR/S/209 
 Page 43 
 
 
59. Sales from IFZ enterprises into  the national customs territory are treated as imports and 
subject to import duties and taxes;  sales from the national customs territory to the IFZ are treated as exports, and are granted an exemption from VAT. 
(4) M
EASURES AFFECTING PRODUCTION AND TRADE  
(i) Incentives 
60. Mozambique grants fiscal benefits to ente rprises under various regimes (Chapter II(4)) 
including the Industrial Free Zone (IFZ) regime (s ection (3)(vi) above).  State-owned enterprises 
supplying fuel (Chapter IV(3)(i)), electricity and water (Chapter IV(3)(ii)), transportation services 
(Chapter IV(5)(iii)), fixed-line telecommunication and postal services (Chapter IV(5)(ii), and health 
and educational services, may also benefit from state aid, as does agriculture (Chapter IV(2)(ii)).  The 
authorities finance subsidies from the budget, supported each year by contributions from Mozambique’s Program Aid Partners (PAPs) ;  US$774.3 million has been pledged for 2009.
65   
(ii) Competition and price controls 
61. Mozambique developed a genera l policy on competition in 200766, but the regulatory 
framework for its implementation is  still under consideration by the Assembly.  This policy notes the 
possible existence of anti-competitive practices such as the imposition of excessive prices, price discrimination, predatory pricing, refusal to se ll or to buy, conditional sales, as well as abuse of 
dominant positions, agreements between companies d esigned to reduce the competition in the market, 
and concentrations that impede competition.  A lthough anti-competitive practices are not subject to 
remedy, the authorities may exert informal pressure on the enterprise or enterprises concerned by such 
a practice.  
62. Several independent assessments suggest that  Mozambique could benefit from a legal 
framework for competition policy.
67  Mozambique is a relatively small market of just under 20 million 
people, and production of sugar, beverages, flour, processed food products, and building materials is 
highly concentrated (Chapter IV).  Imports are not subject to quotas, but are subject to the application 
of high duties, VAT, excise taxes, and, in some in stances, surtaxes (section (2)(iv)).  In the case of 
sugar, the companies operate as a cartel contro lling domestic production and distribution and, thus, 
effectively imports and exports.  This policy has been criticized by the do mestic industries that 
consume sugar, especially beverage-makers, wh ich purchase imported sugar rather than the 
domestically produced product.68 
63. Mozambique has continued its policy of allowing prices to be set by the market, with the 
exception of sugar, and the minimum purchase prices for growers of cashews, tobacco, and cotton (Chapter IV).  Fuel prices are also regulated, w ith an adjustment mechanism for movements in world 
market prices, applied on a monthly basis (Chapter IV (3)).
69 Mark-ups on imported medicinal prices 
are regulated.70  
                                                      
65 Africa News , "Mozambique donor partners pledge U$774.3 in grants".  Viewed at:  http://www. 
apanews.net/apa. php?page=print_eng&id_article=64962 [2 October 2008]. 
66 Resolution No. 37/2007 of 12 November 2007. 
67 CUTS International (2006);  and ICTSD (2007). 
68 CUTS International (2006);  and ICTSD (2007). 
69 Decree No. 63/2006 of 28 January 2006. 
70 Ministerial Diploma No. 109/90 of 29 May 1990. WT/TPR/S/209 Trade Policy Review 
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(iii) State trading, state-owned enterprises, and privatization71 
64. Mozambique has not made any notifications to  the WTO concerning state trading enterprises 
within the meaning of Article XVII of the GATT;  there do not appear to be state-owned enterprises 
with exclusive trading privileges. 
65. Mozambique’s privatization programme is widely considered to be among the more 
ambitious and successful programmes of its kind in Sub-Saharan Africa.72  At the time of its previous 
TPR in 2001, a large number of enterprises had been divested by the State, partly or wholly, although 
enterprises in sectors considered strate gic continued to be wholly-owned.73  Among the strategic 
sectors are fixed-line telecommunications and postal services, water and electricity in urban areas, national parks, and trade in arms and ammuniti on.  In particular, Electricidade de Moçambique
 
(EDM) holds a de facto  monopoly on the production, transmission, distribution, and sale of electricity 
in urban areas (Chapter IV(3)(ii)), Aguas de Moçambique  (AdM)  holds a monopoly on the 
production, transmission, distribution and sale of water in urban areas (Chapter IV(3)(ii)), and 
Telecomunicações de Moçambique , E.E. (TDM) holds a monopoly on the supply of fixed-line 
telecommunications services (Chapter IV(5)(ii)).  The sale of a stake in TDM to a strategic investor and the licensing of a second fixed-line operator were foreseen for 2007, but have been indefinitely 
postponed.
74  In addition to wholly owned enterprises cons idered strategic, the State holds stakes in 
enterprises that are the sole domestic suppliers in ma ny activities, such as:  the airline, Linhas Aereas 
de Moçambique;   airport services, Aeroportos de Moçambique (ADM);  rail transport and ports, 
Caminhos de Ferro de Moçambique;  upstrea m petroleum activities, the three companies 
PETROMOC, CMH, and CMG;  and beverages, e.g. Beers of Mozambique (CDM).   
66. State shareholdings are managed by the Institu to de Gestão de Participações do Estado  
(IGEPE)75, which is a self-financing and autonomous ag ency, established in December 2001.  By the 
end of 2006, IGEPE’s responsibilities comprised a portf olio of 155 companies (279 companies at the 
time of its creation);  however, a list was not provided to the Secretariat.  The State divests its shareholdings to private investors (including on  the Maputo Stock Exchange), or to managers, 
technicians, and employees (GTTs), granted reserved stakes of 20% of shares in  several enterprises.  
Major companies divested include CSM and TREFIL, to Mittal Steel of South Africa;  Texmoque Textil of Mozambique, to METL Group from Tanzania ;  IFLOMA, to Komatiland Forest Ltd.;  and 
EMMA, to Complexo Industrial do Planalto.  IGEPE ma y also liquidate an enterprise or acquire new 
shareholdings.  In 2007, the State acquired from the Government of Portugal a 67% share of 
Hidroeléctrica de Cahora Bassa (HCB), which opera tes the Cahora Bassa dam, for US$700 million;  it 
already owned an 18% stake.  IGEPE is also active in restructuring companies (e.g. Xinavane Sugar 
Mill) with the goal of increasing production and employment.  A National Commission for Evaluation 
and Selling (CNAA), under the technical responsibility of the ministry in charge of finance, is 
responsible for organizing the process of privatization.  
67. In 2005, the  State adopted regulations on the functi on of Public Manager to professionalize 
the management of state-owned enterprises.
76  Further regulations on the activities of state 
                                                      
71 The principal source for this section is IGEPE  (Instituto de Gestão de Participações do Estado), 
No. 1, June 2007. 
72 Agencia de Informação de Moçambique, News , 18 April 2008.  Viewed at: http://allafrica. 
com/stories/printable/200804180846.html [26 May 2008]. 
73 A very large number of state-owned enterprises was one of the legacies of the period of central-
planning that followed independence. 
74 Pinter (2003). 
75 Decree No. 46/2001 of 26 December 2001. 
76 Decree No. 28/2005 of 23 August 2005. Mozambique WT/TPR/S/209 
 Page 45 
 
 
representatives on the governing boards of enterprises where the State holds a stake were adopted in 
2007, again to professionalize this activity.77 
68. In 2003, the State adopted regulations to accelerate the process of transferring stakes to 
GTTs.78  In 2006, it adopted a regulation allowing GTTs or national investors in privatized companies 
to delay payment of the acquisition for up to 15 year s;  those that had paid up 75% of the value of 
their acquisition would be deemed to ha ve fulfilled their payment obligations.79   
(iv) Government procurement 
69. Mozambique’s legal framework for government  procurement has been completely revised 
since its first TPR, with the aim of bringing it into line with international guidelines for good practice.  
This is a development of key importance to Mo zambique.  The State is a major contributor to 
domestic economic activity, and the efficient s upply of basic services (public housing, health, 
education, electrification, water supply, transpor tation, and sanitation), is a major component of 
PARPA II.  Procurement has been identified by the authorities as among the domains where corruption is an issue.
80  In keeping with the objectives of the fiscal management system adopted in 
2004, Sistema de Administração Financeira do Estado (SISTAFE), the Procurement Regulations 
adopted in 2005 are aimed at bringing the benefits  of competitive tendering procedures to contracts.81  
Their implementation is overseen by the F unctional Unit of Supervision of Acquisition  (Unidade 
Funcional de Supervisão das Aquisições (UFSA)), est ablished in 2006;  howeve r, the UFSA is limited 
to providing technical advice.82  The Regulations are applied by the Unidade Gestora Executora das 
Aquisições (UGEAs), contracting entities that are being established progressively at all levels of 
government.  The UGEAs select the regime for th e tendering procedure, award the contract, and 
oversee its execution.  A public procuremen t portal advertises contracts and awards.83 
70. The Procurement Regulations apply to public works and housing, the purchase of goods and 
services by the State, including consultancy services a nd concessions awarded by the State;  its scope 
of application encompasses all bodies and institutions  of the State, including municipalities and state-
owned companies.  The Regulations are being impl emented progressively.  A special regime applies 
to contracts that result from a treaty obligation, or  that are financed by a foreign aid donor, as the 
latter typically contain their own procurement met hods (e.g. preference granted to nationals of the 
donor).  For contracts financed by the Government  of Mozambique, the UGEAs have various regimes 
with associated procedures (Table III.4).  Contract s awarded under the general regime require an open 
tender procedure, and the general re gime may be applied to contracts of any value.  Limited tenders 
may be used for contracts worth up to Mt 1.75 m illion (equivalent to US$70,000) for public works, 
and up to Mt 875,000 (US$35, 000) for goods and services.  Direct negotiation is allowed for contracts 
worth 5% of these thresholds;  and simplified procedures for small contracts worth 15% of the thresholds.   
71. Contracts are open to nationals and foreign pe rsons meeting the qualification requirements.
84 
Potential contractors may submit their qualifications  in advance and be registered for this purpose 
with UFSA.  Foreign persons must have a repr esentative in Mozambique to qualify.  UGEAs may 
                                                      
77 Decree No. 07/2007 of 13 March 2007. 
78 Decree No. 49/2003 of 25 November 2003. 
79 Decree No. 23/2006 of 30 May 2006. 
80 CIRESP (2006). 
81 Ministerial Diploma No. 141/2006 of 5 September 2006. 
82 Decree No. 54/2005 of 13 December 2005. 
83 Portal de Concursos Públicos online information.  Viewed at:  http://www.concursospublicos.gov. 
mz/English/privacy_policy.php.  [6 April 2008]. 
84 Article 18, Decree No. 54/2005 of 13 December 2005. WT/TPR/S/209 Trade Policy Review 
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grant national bidders a preference of 15% for the supply of goods and services to the State, provided 
30% of inputs are sourced domestically, and of 10 % for public works, in each case provided domestic 
sourcing requirements are fulfilled;  the measure is designed to boost the national private sector.85  
However, the UFSA observed that it is not notifie d of preferences granted to nationals, and it is 
unclear whether any are granted. In general, contra cts must be priced in the national currency, and 
bids supplied accordingly.  Bidders that are dissatis fied with the outcome may write to the UGEA in 
question, which asks the UFSA for technical advice ;  the UFSA received 27 such referrals in 2007, 
and supplied (non-binding) technical advice in 14 cases.  The Administrative Tribunal is the judicial instance responsible for disputes on procurement.  
Table III.4 
Regimes, procedures, and scope of applic ation of the procurement regulations, 2008 
Regime Procedure Scope of application 
General regime Open tender Any value 
Public works: contracts up to Mt 87,500  Direct negotiation 
Goods and services:  contracts up to Mt 43,750 
Public works: contracts up to Mt 1.75 million Limited tender 
Goods and services:  contracts up to Mt 875,000 
Pre-qualification 
Two-stage Exceptional regime 
Other 
Auction 
Small contracts Simplified  Public  works: contracts up to Mt 262, 
  500Goods and services:  contracts up to Mt 131,250 
Source:  Information provided by the Mozambican authorities. 
72. In 2007, the UGEAs awarded 1,398 contracts through the use of a public tender, for a total 
value of Mt 2.3 billion (US$92 million) (Table III.5);  68% of the contracts were awarded by open tender, a method used at all levels of Govern ment.  In addition, in 2008, UGEAs awarded 
258 contracts through direct negotiation, withou t tender, for a total value of Mt 60 million 
(US$2.4 million).
86 
Table III.5 
Use of tendering procedures in contracts, 2007 
 Open  
tenders Limited  
tenders Small  
contracts Consultancy  
services Total Share 
(%) 
Central government 501 86 30 42 659 47 
Provincial government 372 219 33 27 651 47 
Districts 33 4 2 0 39 3 
Towns 44 0 0 5 49 4 
Total 950 309 65 74 1,398 100 
Share of total (%) 68 22 5 5 100  
Source:   Information provided by the Mozambican authorities. 
(v) Protection of intellectual property rights (IPRs) 
(a) Overview87 
73. Since its first TPR, Mozambique’s intellectual property regime has been brought into closer 
conformity with the provisions of the TRIPS Agre ement, as they apply to LDCs.  Mozambique's 
                                                      
85 Article 24, Decree No. 54/2005 of 13 December 2005. 
86 Information provided by the authorities. 
87 WIPO (2007). Mozambique WT/TPR/S/209 
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protecting for industrial property dates from 199988, while protection for copyright and related rights 
dates from 200189;  Mozambique has not yet notified its IPR regime to the WTO.  The industrial 
property regime is administered (since May 2004) by the Instituto da Propriedade Industrial (IPI)90, a 
self-financing autonomous agency under the technical responsibility of the Ministry of Commerce and 
Industry, while the copyright regime is admini stered by the National Institute of Books and 
Recordings (INLD), a division of the Ministry of Culture. 
74. Mozambique has been a member of the Worl d Intellectual Property Organization (WIPO) 
since December 1996.  In 1998, Mozambique acceded to the Paris Convention for the Protection of 
Industrial Property, the Madrid Agreement (Inte rnational Registration of Marks), and Madrid 
Protocol.  In May 2000, it acceded to the Patent Cooperation Treaty (PCT), and in January 2002, to 
the Nice Agreement (Classification of Goods and Services).  Mozambique has been a member of 
ARIPO (African Regional Intellectual Property Organisation) since May 2000.  
(b) Industrial property 
75. Mozambique’s law on industrial property rights was updated in 2006.91  It covers:  patents; 
utility models;  industrial designs;  marks;  trade names and insignia of establishments;  appellations of origin and geographical indications;  and logos, accompanied in each case by a term of protection.   
76. Under the 2006 Decree, inventions are patent able, provided they are new, involve an 
inventive activity, and are capable of industria l application (with the noteworthy exception of 
computer programs, which are protected as literary works (section (c) below)), and the term of protection is 20 years.  Protection for utility models is for 15 years and industrial designs for 5 years, 
renewable for up to 25 years;  for marks, trade na mes and insignia of establishments, and logos, the 
term is 10 years, renewable indefinitely for periods of 10 years.  Indefinite protection is granted to 
appellations of origin and geographical indications.  
77. The law contains provision for a compulsory licence to be granted by the Minister of Industry 
and Commerce "without the consent of the proprietor of  the patent, for reasons of public interest", but 
with "adequate remuneration".  In  2004, Mozambique issued its first (and only) compulsory licence, 
for the manufacture of anti-retrovirals (ARVs), with  annual royalties to the proprietor not to exceed 
2% of sales.
92  However, the  manufacturing facility has not yet been established (September 2008). 
78. The IPI administers the industrial property regime, and its portal contains the information 
needed to file an application for grant or a renewa l, including laws and regula tions, forms, procedures, 
and fees.93  The authorities indicate that procedures have  been simplified since 2001.  There are 74 
recognized patent and trademark agents in Mozambi que.  Upon receipt of an application, the IPI 
initiates the procedure for examination and eventual registration;  unsuccessful applicants may appeal 
                                                      
88 Decree No. 18/99 of 4 May 1999. 
89 Law No. 4/2001 of 27 February 2001. 
90 Decree No. 50/2003 of 24 December 2003. 
91 Decree No. 4/2006 of 12 April 2006. 
92 The licence notes that Mozambique is among the countries in Africa that have been worst hit by the 
HIV/AIDS pandemic.  In 2006, the Government esti mated about 1.6 million HIV-positive Mozambicans, of 
which around 15% should be taking anti-retroviral drugs (ARVs), supplied, however, only to about one quarter 
of this population by the end of November (Compulsory licence No. 01/MIC/04).  The licence was granted to 
Pharco Moçambique for patent rights to lamivudine, stavudine, and nevirapine, as a fixed-dose combination.  Viewed at:  http://www.cptech.org/ip/ health/c/mozambi que/moz-cl-en.pdf [12 June 2008];  Mozambique News 
Agency, AIM Report No.331 , 18 December 2006.  Viewed at: http://www.poptel.or g.uk/mozambique-
news/newsletter/aim331.html [29 June 2008];  and WTO document WT/MIN(01)/DEC/2 of 20 November 2001. 
93 IPI online information.  Viewed at:  http://www.ipi.gov.mz/rubrique.php3?id_rubrique=39. WT/TPR/S/209 Trade Policy Review 
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to IPI.  Industrial property titles are published in the Industrial Property Bulletin .  Mozambique 
recognizes industrial property titles secured through the regional organization ARIPO.  The IPI is the 
receiving office for applications under the Patent Cooperation Treaty, as well as applications for the 
international registration of mark s under the Madrid Agreement.   
79. With respect to infringement of industrial prope rty rights, the 2006 Decree clarified the scope 
of the law to include counterfeit products94, and introduced fines to deter infringement.95  Parallel 
imports are not covered.  Infringeme nt of exclusive rights in a patent is punishable by a fine of 
89 times the minimum wage, in the event the offend er is a person, and 200 times the minimum wage 
if the offender is an enterprise;  for industrial d esigns, the fine is respectively, 33 or 120 times the 
minimum wage.  The counterfeiting, imitation, illegal,  and illicit use of marks is punishable by a fine 
of respectively, 120 or 240 times the minimum wa ge for a person or enterprise.  The authorities 
observe that counterfeiting of marks is the leading ca use of infringement of intellectual property rights 
in Mozambique, concerning notably toothpaste, soap, cooking oil, and biscuits. 
80. Supervision of industrial property rights is the responsibility of the General Inspectorate of 
the Ministry of Industry and Commerce, in consul tation with the IPI;  the law provides for the 
establishment of a brigade composed of members of bo th entities.  Complaints by holders of industrial 
property title are to the General Inspectorate, wh ich investigates and decides whether infringement 
has occurred.  The Inspectorate may order the seizure of infringing products or merchandise upon 
import or export, or may refer the matter to the Common Court.   The authorities provided no details 
on the operation of these provisions. 
(c) Copyright and related rights 
81. Mozambique’s copyright regime was adopted in 2001 , at the time of its first TPR.  It covers 
literary, artistic, and scientific works;  computer pr ogram are explicitly identified as literary works.  
This applies, in particular, to the term of copy right protection which, under the Mozambican regime, 
covers the life of the author plus 70 years (in the ev ent of joint authorship, the term is 70 years after 
the death of the last surviving au thor), while a term of 50 years applies for performers’ rights and 
sound recordings, and 25 years for broadcast programmes.   
82. According to the law, the onus is on the injure d party or his legal representative to institute 
legal proceedings in defence of infringed rights. 
 
                                                      
94 Article 177.  Article 160 of Decree No. 18/99 of 4 May 1999 only proscribed the illegal use of 
marks.  Counterfeiting, imitation and illicit use of appellations of origin or geographical indications are also 
proscribed since 2006.   
95 Decree No. 4/2006 of 12 April 2006, Title III.